T H E L UXUR Y G UIDE T O
Selling
YO UR H OME
ST E PH ANIE ISM ER T
STEPHANIE ISMERT REALTOR® GRI, CLHMS, CNHS, RCC
303.522.3552
stephanieismert@msn.com
RE/MAX Professionals 1745 Shea Center Drive, Suite 100 Highlands Ranch, CO 80126
ABOUT STE PH ANI E I SME R T Stephanie is an accomplished Realtor with an extensive background and track record in real estate. In her hometown of Denver, she has a pulse on the south Denver neighborhoods and communities. Drawing from the many transactions she has completed, Stephanie skillfully negotiates and navigates Denver’s fast-paced and complex real estate landscape. With an unwavering drive to provide the absolute best and personal service, both buyers and sellers can count on a smooth experience while working with a dedicated broker who brings honesty, integrity, extraordinary attention to detail and a caring personal touch to all of her clients. Stephanie’s market knowledge stems from raising her three children in the South Metro area. Over the past 30 years, Stephanie has personally witnessed the trends and changes in the South Metro neighborhoods, traffic, and schools. Let her put this in-depth market knowledge to use for you when exploring or selling in these neighborhoods. With a business built on 95% referrals and repeat clients, Stephanie strives to become a life long, trusted real estate advisor by providing straightforward and honest advice, counsel, and service. Stephanie and her husband Stephen are dedicated to their three children and charitable endeavors, such as Hope Haven Rwanda, YWAM, Missions Ministries, Young Life, Urban Youth Ministries, Compassion International, and P.E.O. In their free time, they enjoy golf, hiking, biking, skiing, and travel.
CON T E NTS Introduction - Welcome to Selling Your Home
1
10 Steps to Selling Your Home Define Your Goals Select A CLHMS Real Estate Professional Price The Property
3 4 6 9
Prepare The Home
11
Market The Home
15
Show The Home
16
Ask For Feedback
19
Negotiate The Offer
20
Satisfy Contingencies
23
Close The Deal
24
Move Out Checklist
27
Common Mistakes For Home Sellers
28
Frequently Asked Questions
31
A Home Seller’s Glossary
32
I NTRO DUCTIO N WELCOME TO SELLING YOUR HOME The selling process is a combination of excitement and new experiences, whether you have sold several homes or are selling for the first time. The simple fact is selling your home is rarely a decision people make on a regular basis. There are several moving parts and points to consider, which is why it is important to have a trusted professional consulting you at each step of the process. This Seller’s Guide is intended to give you a tangible resource that will help you define your goals and direct you through the process so that you can make informed decisions. When you sell a home, it should be about YOU: • Your dreams • Your requirements • Your financial situation • Your time • Your lifestyle choices • Your concerns
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Seller Start Here
Price The Property
Satisfy Contingencies
Negotiate The Offer
Prepare The Home
Ask For Feedback
Market The Home
Show The Home
Select A Real Estate Professional
Define Your Goals
10
STEPS TO SELLING YOUR HOME
Close The Deal
Turn Over Possession!
If you hire me, I will personally walk you through every step of this process. I will not hand your transaction off to an assistant as other brokers might do.
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DEF INE YOU R GOAL S DETERMINE WHY YOU ARE SELLING YOUR HOME Before your start to think about all the things that need to be done, take some time to figure out why you are selling and clearly define your goals. Everyone has different reasons for selling - as you start to go through this process of discovery, focus on what is important to you and your family, as this will help streamline the process. Here are six important questions to ask yourself: xx Is there a timeline? xx Are you relocating? xx Are you looking for a bigger home or looking to downsize? xx Looking for a different neighborhood? More city, more suburban? xx Looking for different amenities? xx Are financial considerations relevant? xx How long do you plan to be in your new home? Here are five important considerations: xx Do you understand the associated costs? xx Is this the right time for you to sell? xx What are the present market conditions and the implications to your sale? xx Does your home’s equity give you an advantage? xx What are the current mortgage interest rates options compared to your rate and loan commitment? Recognize that every market is different and the selling process can be a sprint or a marathon - be prepared for both.
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S ELEC T A R E A L E ST A T E PR OF E SSI ON A L
W I T H T HE CLHMS D E SI GNATI O N
COMMITMENT AND DEDICATION It is important to work with a real estate professional who is not only committed to working with you, but who is also dedicated to getting your home sold in the shortest time for the most amount of money. Your real estate professional should guide you through the entire process - consider their knowledge, experience, and expertise. Check their track record of working with sellers – from listing a home, negotiating the price, helping with financial solutions, understanding the local market, its property types, and property values to their knowledge of the transaction process.
RESPONSIBILITIES
PREPARING AND SHOWING THE HOME
Educating you about the selling agency and professional
Preparing your home to match buyer’s expectations,
responsibilities including complete disclosure, loyalty,
arranging the right showings, and recommending
confidentiality, compliance, and accountability.
relevant experts.
UNDERSTANDING YOUR REQUIREMENTS
CONSULTATION AND NEGOTIATION
Taking the time to understand the priority of your
Providing consultation when offers come to purchase
requirements – price, timeline, relocating, even if
your home. Evaluating the strength of the buyer and
it changes.
the offer terms. Negotiating the best possible price and terms for you, finding home-related service providers,
MARKETING YOUR HOME
and taking care of all the documentation details.
Providing a sophisticated marketing strategy that ensures the maximum exposure of your home to the
CLOSING
right buyers. Keeping you up-to-date with current
Keeping you fully informed of activities that lead to the
market trends, neighborhood fluctuations, new sales,
transaction closing.
and listings. Selling is all about having current market knowledge at your finger tips.
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SIGNING A LISTING AGREEMENT A listing agreement is a contract between you and me. It is an agreement that says I have the right to list, advertise, and handle the sale of your home. It is important to understand the terms of agreement because you will be bound by them - forming an obligation of time and commitment of responsibilities.
KEY FACTORS: xx Commission. The amount you’ll pay me and a buyer’s broker. xx Exclusive right to sell. This gives me the right to sell your property. xx Duration. The amount of time our listing agreement is in effect. xx Protection Clause. A clause that protects me after the date, preventing you from avoiding payment to me should you find a buyer while under contract. xx Duties. The agreement lays out the activities I am authorized to conduct on your behalf. xx Representations. The agreement may also require you to verify certain legalities and facts about your home. xx Dispute resolution. Specifies how you will handle disputes that cannot be worked out informally.
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PR IC E TH E PROPERTY
Once you have engaged me as your agent, two things need to be done: 1. Choose a Title Company You need a clear title for the home before you can put it on the market. We typically engage a Title Company to conduct a Title Search to make sure we identify any title or lien issues to be resolved. 2. Price the Property Price sets “the opinion of value” when selling your home. Price it too high against comparable properties and your home may not sell within your optimal timeframe. Price it too low and you may not achieve the true value of your home.
THE FAIR MARKET VALUE IS INFLUENCED BY: Location Condition and your home’s unique features Buyer demand Prices of properties on the market in the immediate area Recent sales Availability for financing and prevailing interest rates
THE HIDDEN INFLUENCE Always make sure you highlight the positives and negatives of your home to me – these nuances can be turned into an advantage if known in advance. Remember, no one knows your home and its location like you do. When we do the initial tour of your home, I ask you to “show me your home as if I were going to buy your home.”
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PREPA RE TH E H OM E
Every seller wants to sell their home quickly and every buyer wants to believe the home they are looking at is the “right one.” As we prepare the home for sale, here are a few things to keep in mind. Begin this process with one simple idea: “This is not my home; it is a house.” For this Seller’s Guide we have broken down this process into three levels. As always, we will discuss what level is required for you to get the most value for your home.
LEVEL 1: THE BASICS • De-clutter If it is not needed, remove it and put it in storage. Pack up the knick-knacks. Keep the counters clean. • De-personalize Remove photographs and memorabilia. Remember this is going to be a fresh start for someone else and you want them to be able to visualize making their own memories. • Deep cleaning Clean the home inside and out. Clean inside the cupboards. Clean the grout in your bathroom(s). Remove spider webs, dust bunnies, wash the windows, dust the furniture, clean the carpets, vacuum, etc. Don’t forget about the outside!
LEVEL 2: BEYOND THE BASICS • Painting walls Think neutral colors. If you have off-beat colors, bring them back to a more neutral color, as it will allow the buyer to visualize a clean slate. • Change room decorations and themes Jungle themed room? All pink or all blue kid’s room? For now redecorate and keep it simple. • Minor repairs These repairs are not supposed to break the bank. If it’s a cheap and easy fix, then fix it. Install carbon monoxide and smoke detectors to code. Repair squeaky doors, holes in walls, leaking faucets, broken cabinet doors, and anything else that could deter buyers.
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PR EPARE TH E H OM E (CONTINUED)
LEVEL 3: WAY BEYOND THE BASICS xx Major renovations Haven’t replaced your roof in 20+ years? Need to replace the carpet? Want to add better flooring? Remodel the bathroom? These more expensive repairs will add value to your home and are projects worth considering. If you don’t want to lay out the cash, I have creative suggestions. • Finish the basement Never got around to finishing the basement? Now is the time you may want to consider it. A finished, blank canvas can add extra value to your home, and the buyer may be willing to pay more for something they don’t have to do. But don’t go overboard, as most buyers have their own ideas for the detail finish work. xx Other repairs With these larger repairs it is important to understand that any work you put into the home should add value to the final sale price; if not, it’s not worth it.
HELPFUL TIPS: xx Think of this process as a head start to packing. xx Even though some repairs seem minor, they become a major factor in determining whether the buyer will actually buy. xx Pay particular attention to smell: odors are a complete turn-off. xx Don’t forget about the outside as this is the first impression. xx Scrutinize the home. If you were a buyer would you want to buy this home? You have lived here and you know all the pros and cons. Highlight the pros and help eliminate the cons.
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MAX PROFESSIONALS Shea Center Dr., Ste 100 lands Ranch, CO 80126
MBINE COUNTRY CLUB
— JUST LISTED —
18 CLUB LANE
— JUST LISTED —
18 CLUB LANE
LITTLETON, CO | COLUMBINE COUNTRY CLUB STEPHANIE ISMERT
RE/MAX PROFESSIONALS 1745 Shea Center Dr., Ste 100 Highlands Ranch, CO 80126
GRI, CLHMS, CNHS, RCC REALTOR®
303.522.3552
18 CLUB LANE
stephanieismert@msn.com
IN COLUMBINE COUNTRY CLUB Each office independently owned and operated.
PREPARED ESPECIALLY FOR JONATHAN AND ANGELA-MARIE WILLIAMS 5 BEDS | 6 BATHS | 5,651 SQ. FT. | FINISHED BASEMENT
IN COLUMBINE COUNTRY CLUB
Presented By Stephanie Ismert
Presented By Stephanie Ismert
YOUR COLUMBINE COUNTRY CLUB REAL ESTATE SPECIALIST
PREPARED ESPECIALLY FOR JONATHAN AND ANGELA-MARIE WILLIAMS
YOUR COLUMBINE COUNTRY CLUB REAL ESTATE SPECIALIST
PREPARED ESPECIALLY FOR JONATHAN AND ANGELA-MARIE WILLIAMS
d Angela-Marie, help you achieve exceptional results. y at 303.522.3552.
w.REALMarketing4You.com | 858.952.4280 | ©2019
— JUST LISTED —
Jonathan and Angela-Marie, if you would like to have your home professionally marketed, call Stephanie Ismert today at 303.522.3552.
18 CLUB LANE
Stephanie negotiated the sale of this home for 100% OF CLIENT ASKING PRICE IN 2 WEEKS!
Published by REAL Marketing (REM) | www.REALMarketing4You.com | 858.952.4280 | ©2019
JUST SOLD
COLUMBINE COUNTRY CLUB STEPHANIE ISMERT
Presented By Stephanie Ismert
YOUR COLUMBINE COUNTRY CLUB REAL ESTATE SPECIALIST
JUST SOLD
COLUMBINE COUNTRY CLUB Stephanie was terrific! Her marketing was creative and effective. Stephanie’s knowledge, negotiating skills, honesty, and analysis of the market were far superior to any Realtor we have ever worked with. — Deborah & George
303.522.3552
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STEPHANIE ISMERT
18 CLUB LANE
5
MAR KET TH E H OM E
Each home has its own unique story to tell and the marketing should reflect that. I will take time and sit down with to discuss the correct marketing plan to successfully market your home. A comprehensive and customized marketing strategy will complement the time, money, and energy that you have invested in your home. I believe that every home is unique and has different features to highlight. Each home that I sell deserves personalized marketing. You will never see a cookie cutter approach with my marketing plan. Photography: A key element to all marketing is the
and open houses create referrals from neighbors who
right photography. Your home has five seconds to
are the biggest advocates for having their friends and
impress and grab attention. The right photography
family move into their neighborhood.
can give you an extra 20 seconds and a great photo can evoke emotion. This is where buyers fall in love first.
Market Updates: I will continually stay on top of
Skilled professionals know how to use composition,
the market for you. I monitor the homes that have
color, and lighting to enhance the subject.
sold, those that haven’t, and those that have gone under contract to ensure that your home is still
Print Media: Tangible resources such as yard signs,
priced appropriately. I will provide updated to you
directionals, postcards, property brochures, are great
periodically on the current market activity with
options to draw buyers in to come visit the home.
new competing listings, stats of competing listings, number of showings and of course feedback.
Digital Exposure: Our online footprint gives you access to social media and 24/7 web exposure. It is
Creative Solutions/Objective Opinions: As I get to know
the quickest way to get your home exposed locally,
your home better and as we receive feedback, I may
nationally, and internationally. All of my listings
find the market is objecting to something that neither
have a virtual tour with descriptive captions.
of us thought of or I may discover special features in your home that should be showcased differently.
Networking and Referrals: I will utilize my network
Either way, I take great pride in my creative solutions
and referral systems to create additional sources
- making adjustments as we go along in response to
of potential buyers. Networking with other local,
market feedback and conditions. If I see something
national, and international relocation experts creates
that needs to be changed, I will tell you whether or
a larger database. Local advertising, word-of-mouth,
not it is something you want to hear.
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S HOW TH E H OM E
Sellers place a lot of pressure on themselves when showing potential buyers their property. Here are a few things to keep in mind to generate the best first impression and increase your chances of receiving those all-important offers.
LET ME HANDLE IT A potential buyer is less likely to voice any concerns in front of you. Give them the space to explore and scrutinize. I am your ally, let me handle any concerns a buyer may have.
BE FLEXIBLE Many home buyers are on a tight schedule, just like the rest of us. Continue to be flexible, especially if you are still living in the home.
QUICK CLEAN During the selling process, it is imperative to always keep your home clean. Wipe down counters, vacuum daily, and make sure all clutter is cleaned up. TIP: keep a box for personal items - when not in use keep them in a closet or drawer.
CLIMATE CONTROL Make sure the inside temperature of the home is comfortable. You want buyers to feel comfortable and not rush the process because they are too hot or too cold.
ANIMAL CARE A pet-friendly home is a great selling point. However, if potential buyers are not animal friendly you don’t want your pet(s) to be a distraction. If you can, remove your pets from the home temporarily or place them in a contained space.
LIGHT THE WAY The home should feel open, bright, and welcoming. Turn on the lights and open the curtains – this will allow the buyers to see the true value of the home.
COMMUNICATE WITH ME If there are special aspects to your home that you want to be featured and recognized during the viewing of the home, I will provide special feature cards or contact the showing agent directly to make sure these features are recognized.
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THE “SHOW HOME” READY CHECKLIST YOU HAVE 10 MINUTES: Make the beds Grab a basket or box and throw all personal items in there and put it in the back of your car Empty the garbage Make sure the towels in the bathroom are clean, straightened, and match Put down the toilet lids Wipe down all counter tops and sinks Turn on all the lights in the house Make sure the house temperature is comfortable Make sure the home smells good Straighten chairs and furniture YOU HAVE ONE HOUR: Do everything on the ten minute list, PLUS: Vacuum all carpeted areas, as needed Sweep all surfaces Clean all mirrors Give the toilets a good cleaning and wipe down Clear kitchen counters and wipe down Laundry should be clean and put away Sweep the front doorway and shake out the mat
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ASK FOR FEED BACK
It is never easy hearing negative remarks about your home, but knowing is half the battle. The information provided by potential buyers and their brokers could be helpful for the next showing; it will also show the buyer that you value their opinion. Following an open house or buyer showing, we will discuss your home’s reception and consider recommendations.
REVIEW: xx Are you getting a steady stream of showings or people to open houses? I am always willing to communicate with other agents with active listings to find out how their showing traffic compares. xx I will share all feedback with you, the good, the bad, and the ugly. You cannot, I repeat, cannot take the feedback provided personally. We will use this feedback to enhance your home’s presentation for future showings. xx Could your home use an incentive to entice more buyers to come for a look? xx If necessary, we will discuss what other marketing strategies you can utilize to attract more buyers. xx It is important to keep things in perspective following an open house or a buyer showing. Remember home shoppers need time to process what they have seen and maybe time to look around at other homes before making such a big decision. xx Be patient. Be open to feedback and we will continue to maintain an open dialogue.
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N EGOTI ATE TH E OFF E R
Perhaps the most complex moment in the sales process comes when you get an offer on your home. There are many components to an offer price, terms, and timing that I will explain so that you are comfortable with all the steps involved. An offer is typically drafted with conditions. This offer is known as a conditional offer, once the conditions are satisfied, the buyer or seller will be obligated to purchase or sell the property. If the conditions are not met then the buyer or seller is not obligated to purchase or sell the property.
POINTS TO CONSIDER IN YOUR NEGOTIATIONS: xx The comparative condition of your home xx Length of time on the market xx Buyer vs seller activity xx Location xx Your urgency to sell You can reject or accept the initial offer. If you agree to some points of the offer but not others, we will submit a counter offer. The counter offer may differ from the original offer in respect to price, conditions, closing date, and the like. Offers can be countered back and forth until one party accepts or rejects the offer, ending the negotiations altogether. Once an offer on a property has been made by a buyer and accepted by the seller, they enter into a legal contract known as a Contract to Buy and Sell. This document outlines the specific terms and conditions of the transaction and is acknowledged by both parties by the signing of the document.
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SAT ISFY CONTI NGENCIE S
Once both parties accept the sales contract and its contingencies, we will start to work towards removing or satisfying these contingencies. I will advise you on what contingencies you can remove based on the results once the appropriate due diligence has been completed. Ideally, both parties should have been able to negotiate a reasonable time to remove these conditions. Conditions and contingencies may include, but are not limited to, inspection items, reviewing of due diligence and HOA documents, surveys, appraisal, and loan objections. These are all items in which the buyers broker and I will work towards finding a solution or resolution. I will advise you on the right course of action based on my knowledge and experience. Once both parties are satisfied with the conditions, we will obtain a clear to close from the lender and head to the closing table.
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10 C LOS E
TH E D E AL
After all the contingencies have been satisfied, it becomes the responsibility of the legal and financial institutions to prepare all the necessary paperwork. Should there be any issues, I will contact you. You will be contacted by the Title Company and provide them with instructions on how you would like the funds deposited from the sale. Prior to closing, you will be presented with a closing settlement statement for your review and approval, which will itemize all the costs and expenses you incur when selling your home. I will walk you through this statement and answer any questions you may have. At closing, you will sign all your legal documents, including paperwork related to the transfer of ownership. There will be a representative from the Title Company to facilitate the exchange, in addition to buyer, buyer’s broker, sometimes their lender, you and me. When closing is finished, you should not only be prepared to hand over the keys, but any copies of documentation that relates to the property and its amenities. You will receive a copy of the documentation you signed together with a statement of costs. At the end of closing, the deed will be taken and recorded at the county clerk’s office by the Title Company.
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MO V ING OU T CH E CKL IS T Even if you are hiring professionals to move you out there are still important considerations: Notify current utility companies - advise of new address, shut-off and connection dates, and if necessary, moving equipment: Electric Water/Sewage Trash Gas Telephone Cable/Satellite Internet Pest Control Security Service Insurance - transfer homeowners insurance to new home File change of address with postal service - start and end dates Notify DMV of new address - driver’s license, registration tags Notify your bank and credit card companies of your move and that you will be making purchases in a new area Update voter registration Updated medical records - notify doctors, dentists, pharmacists Update employer records Notify children’s school and activities of move Cancel/Update gym memberships and local memberships, if not staying in area Return library books or other things you have borrowed Hire housekeeping and landscaping services to ensure the home is clean before the new buyers arrive Send out “Just Moved” cards to notify family and friends of new address Cancel monthly/weekly deliveries, such as medicine, milk man, and food delivery services
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COMMON M I STAKE S F O R HOM E SE LLE RS Not Hiring a Professional: I have sold hundreds of homes
Failing to Complete a Full Set of Disclosures Prior to Closing:
and have the experience and knowledge needed to sell
Be upfront about any of your home’s issues; this will
your home for the most money.
save you money and time, especially if the buyers discover the problem themselves. In addition, if you
Not Pricing Your Home Correctly: Overpricing or
adequately disclose an issue up front, it is more difficult
underpricing your home can be a costly mistake. It is
for a buyer to justify a price reduction due to the issue.
critical to review recent comparables and know the market in order to price your home correctly.
Overlooking Fees and Extra Expenses at Closing: I am happy to provide a net sheet from the Title Company,
Neglecting Necessary Repairs: It will always cost you less
listing expenses to expect at closing.
to fix things ahead of time, rather than having buyers request that you fix it through their vendor of choice or
Not Hiring a Professional Photographer: 95% of all buyers
on a short timeframe, which can get costly.
start their home search online, I will help to make sure your home dazzles with great photographs. You don’t
Not De-cluttering: Clutter eats equity and kills deals. One
get a second chance at a first impression.
of the least expensive improvements you can make to your home is to de-clutter and create a sense of space
Not Trusting and Communicating with Me: I am your
throughout the home.
biggest ally. Trust me to be the expert and guide you through this process. Be as open and honest as you can
Getting in the Way of Negotiating: Too many sellers take negotiating personally and lose out on creating a win-win deal. Remember, this is a business transaction.
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and allow me to do my job - I am here for you.
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I can’t say enough about Stephanie’s professionalism, her true caring nature, and extensive knowledge. She brings these qualities to the table for her clients, not just in the real estate transaction, but in the transition to their new home/community. Stephanie has a true commitment to her clients, and she is extremely responsive and thoughtful in her recommendations. All of the people I have interacted with have such glowing things to say about her. To this day, she always makes me feel like I am a high priority. I would highly recommend Stephanie for your real estate transaction!
Angie H. Stephanie Ismert sold us our home in Castle Pines. We have recommended her to friends and family, and they have had great results too! She’s a long time market expert and has a terrific way of finding just the right home for you. Detailed, timely, and very willing to push through difficult to navigate situations. She’s tenacious with a smile...and a complete professional.
Colleen B. We have now used Stephanie for two of our homes. We initially used her five years ago and were so impressed that she was the only one we thought of for finding and listing our current house. If you want someone who’s going to get all over your listings and aggressively find and sell your house- she’s the one. She’s like a real estate tiger. And as stressful as it is to find a home or sell yours, she’s a lot of fun to work with. I can’t say enough about her. She knows the market, offers great advice and guidance, and gets you the most for your money - whether you’re buying or selling.
Natalie S.
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F R EQ UENTLY ASKE D Q UE S TIO N S When you are ready. Every real estate market is
HOW MUCH COMMISSION SHOULD YOU PAY?
different, therefore, the best time to sell a home will
Commission is negotiable, period. The saying “you
be different from community to community. Don’t
get what you pay for,” is true when it comes to real
wait for an ideal market to sell.
estate too. Choosing a real estate professional based
WHEN IS THE BEST TIME TO SELL?
solely on the fact they offer the lowest commission
HOW DO YOU CHOOSE A REAL ESTATE PROFESSIONAL?
amount is a mistake made by home sellers when
Think of the process as equivalent to giving a job
their home.
choosing a real estate professional to sell
interview. Do they know your local market? Price for sales in your community? Can they provide
CAN I GET OUT OF A LISTING AGREEMENT SHOULD I DECIDE NOT TO SELL?
testimonials? Ask for references!
Don’t be afraid to ask your real estate professional if
points? Types of homes? What is their track record
you can back out of the deal. In may cases you may
HOW LONG DOES THE LISTING AGREEMENT LAST?
terminate your listing agreement with your broker
Every real estate professional will have a preferred
you have not signed a Contract to Buy and Sell.
at any time should you decide not to sell, as long as
length. One thing to keep in mind when asking
the market in your local real estate are 75, a 90-day
CAN I GET OUT OF A CONTRACT TO BUY AND SELL WITH A BUYER, SHOULD I DECIDE NOT TO SELL?
listing agreement may not be enough.
In most cases a seller cannot terminate a Contract
about the length of a listing agreement is the average days on the market. If the average days on
to Buy and Sell unless the buyer is in breach of the contract. However, if the buyer requests a price reduction or repairs you are not obligated to reduce your price or make repairs.
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A HOME SELLER’S GLOSSARY When selling a home, it’s important to understand some of the key concepts and terms. Throughout the selling process, your real estate professional will be available to explain any unfamiliar terms you encounter. That said, here is a short list of terms you’ll want to know: Abstract Of Title – A complete historical summary of the public records relating to the legal ownership of a particular property from the time of the first transfer to the present.
Closing Costs – The costs to complete a real estate transaction in addition to the price of the home, may include: points, taxes, title insurance, appraisal fees, and legal fees.
Adjustable Rate Mortgage (ARM) – Also known as a variable-rate loan, an ARM is one in which the interest rate changes over time.
Closing Date – This is usually the date that the legal ownership of the property transfers from the seller to the buyer.
Agreement of Sale – Also known as contract of purchase, purchase agreement, or sales agreement according to location or jurisdiction. A contract in which a seller and buyer agree to transact under certain terms, spelled out in writing and signed by both parties.
Conditions or Subjects – Items that are usually put in place to protect a party’s interests upon selling or buying the property and refer to things that must occur or be in place before the sale closes. Some of these conditions could be “subject to financing approval,” “subject to the buyer’s house selling,” “subject to seller finding suitable housing,” etc.
Amortization – The process of reducing the principal debt through a schedule of fixed payments at regular intervals of time, with an interest rate specified in a loan document. Appraisal – An appraiser’s estimate of the market value of a property based on local market data and the recent sale prices of similar properties. Assessed Value – The value placed on a home by municipal assessors for the purposes of determining property taxes. Closing – The final steps in the transfer of property ownership. On the closing date, as specified by the sales agreement, the buyer inspects and signs all the documents relating to the transaction and the final disbursements are paid. Also referred to as the Settlement.
Contingency – A clause in the purchase contract that describes certain conditions that must be met and agreed upon by both buyer and seller before the contract is binding. Counter Offer – An offer, made in response to a previous offer, that rejects all or part of it, while enabling negotiations to continue towards a mutually-acceptable sales contract. Conventional Mortgage – One that is not insured or guaranteed by the federal government. Debt-to-Income Ratio – A ratio that measures total debt burden. It is calculated by dividing gross monthly debt repayments, including mortgages, by gross monthly income.
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Deposit – The amount of money provided from the buyer to the seller as a token of the buyer’s assurance and intention to buy the property involved. The deposit is applied against the purchase price of the home once the sale has closed. Your agent can assist you in proposing a certain and appropriate amount for the deposit. Disclosures – Disclosure statements, which can come in a variety of forms, are the buyer’s opportunity to learn as much as they can about the property. Seller disclosures are based on seller's knowledge of issues. They to serve to inform buyers; they can protect the sellers from future legal action. It is the seller’s chance to lay out anything that can negatively affect the value, usefulness, or enjoyment of the property. Down Payment – The money paid by the buyer to the lender at the time of the closing. The amount is the difference between the sales price and the mortgage loan. Requirements vary by loan type. Down payments less than 20% usually require mortgage insurance. Earnest Money – A deposit given by the buyer to bind a purchase offer and which is held in escrow. If the property sale is closed, the deposit is applied to the purchase price. If the buyer does not fulfill all contract obligations, the deposit may be forfeited. Equity – The value of the property, less the loan balance and any outstanding liens or other debts against the property.
Easements – Legal right of access to use a property by individuals or groups for specific purposes. Easements may affect property values and are sometimes part of the deed. Escrow – Funds held by a neutral third party (the escrow agent) until conditions of a contract are met and the funds can be paid out. Escrow accounts are also used by loan services to pay property taxes and homeowner's insurance. Fixed-Rate Mortgage – A type of mortgage loan in which the interest rate does not change during the entire term of the loan. Home Inspection – Professional inspection of a home, paid for by the buyer, to evaluate the quality and safety of its plumbing, heating, wiring, appliances, roof, foundation, etc. Home Warranty - Service contract that covers the repair or replacement of home system components and appliances that break down. Homeowner's Insurance – A policy that protects you and the lender from natural disasters and liabilities, such as a visitor injury, or damage to your personal property. Inclusions and Exclusions – Specifications within the offer that detail the items to be included or excluded from the purchase of the property. Typical inclusions are appliances, window coverings, fixtures, and decorative pieces. Lien – A claim or charge on property for payment of a debt. With a mortgage, the lender has the right to take the Title to your property if you don’t make the mortgage payments.
Market Value – The amount a buyer would pay a seller for a home. An appraised value is an estimate of the current fair market value. Mortgage Insurance – Purchased by the buyer to protect the lender in the event of default (ty pically for loans with less than 20% down). Available through a government agency like the Federal Housing Administration (FHA) or through private mortgage insurers (PMI).
dependent on market conditions and may differ from the seller’s current asking price. There is no “normal” amount or percentage that a price will differ from its asking price, as the final price will be determined by many factors, including the seller’s motivation and how close the asking price is to actual “market value.”
Possession and Adjustment Dates – When the buyer takes possession as specified in contract of purchase and adjustments are made for prepaid taxes, maintenance fees, etc. They are usually the same date.
Terms – An offer includes certain “terms”, which specify the total price offered and how the financing will be arranged, such as if you will arrange your own with a financial institution or mortgage broker or if you wish to take over the seller’s mortgage (assumability).
Possession Date – The date, as specified by the sales agreement, that the buyer can move into the property. Generally, it occurs within a couple days of the Closing Date.
Title – The right to, and the ownership of, property. A Title or Deed is sometimes used as proof of ownership of land. Clear title refers to a title that has no legal defects.
Pre-Approval Letter – A letter from a mortgage lender indicating that a buyer qualifies for a mortgage of a specific amount. It also shows a home seller that you’re a serious buyer.
Title Insurance – Insurance policy that guarantees the accuracy of the title search and protects lenders and homeowners against legal problems with the title.
Principal – The amount of money borrowed from a lender to buy a home, or the amount of the loan that has not yet been repaid. Does not include the interest paid to borrow. Purchase Contract – A detailed written document which makes an offer to purchase a property, and may be amended several times in the process of negotiations. When signed by all parties involved in the sale, the Purchase Offer becomes a legally-binding sales agreement.* Purchase Price – The amount that the buyer is offering to pay for the property, usually
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Truth-In-Lending Act (TILA) – Federal law that requires disclosure of a Truth-InLending statement for consumer loans. The statement includes a summary of the total cost of credit. Title Search – A historical review of all legal documents relating to ownership of a property to determine if there have been any flaws in prior transfers of ownership or if there are any claims or encumbrances on the title to the property. * The Purchase Offer and contract procedures vary by region.
MY COM M I TM E NT Plain and simple, I love what I do. I do not consider my career a “job” but rather something that I get to do. I love the process, the homes, and bringing parties together to complete a transaction. Most importantly, I enjoy people and the relationships developed during the home buying and selling process. While working with buyers and sellers, I take great pride in putting together an optimal deal for my clients. I appreciate the responsibility and privilege to represent and guide my clients through one of the most important financial transactions they will ever make. To put the best deal together for you, there is a lot that goes on behind the scenes. I am committed to: • Having many connections in and out of the real estate world including agents, lenders, title companies, legal experts, financial planners, home improvement contractors, and a vast sphere of resources. • Ensuring that systems are in place so that the process of selling or buying is efficient and seamless. • Providing my expertise and experience gained through many real estate transactions, along with hundreds of hours of continuing education to continually improve upon my skills and knowledge. • Marketing your home with a personal touch. Every home is unique and has different features to highlight. Each home that I sell deserves personalized marketing; you will never see a cookie cutter approach with my marketing plans. In the end, my goal is to provide you with excellent service and great results. I would consider it a great privilege to help you buy or sell your home.
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N O T ES
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Each Office is independently owned and operated. Copyright Š June 2019